IMF revises up UAE’s 2018-19 growth forecast

The IMF expects the UAE’s economy to grow by 2.9 percent this year, as against 2 percent projected by it in April, according to a Reuters report on Monday.

Quoting Natalia Tamirisa, IMF mission chief to the country, the report said IMF also revised UAE’s growth outlook for 2019 to 3.7 percent, up from 3 percent projected earlier.  

Tamirisa however urged the UAE to monitor liabilities related to government enterprises more closely.

“Non-oil activity remains subdued amid continued corporate restructuring, real estate overhang, and tightening financial conditions,” Tamirisa said in a statement after annual consultations between the IMF and the UAE.

However, she added Dubai government finances were not a source of concern.

“The ratio of Dubai’s public debt to GDP is manageable at 30 percent, not high by international standards, and is expected to rise only moderately in the next couple of years as Dubai prepares to host the Expo 2020 world’s fair,” Reuters quoted her saying.

Tamirisa also noted Dubai state firms had been restructuring and in some cases deleveraging, which left them more able to manage risks.

“We do not expect pressures on Dubai finances,” she said.